China’s polyester industry is reviving. Many Chinese polyester manufacturers are recovering from a recent period of overcapacity. Global demand for polyester is expected to grow faster than the capacity of Chinese manufacturers. Most demand for polyester fiber comes from China, India and Southeast Asia-based apparel, garments and home furnishings manufacturers. China alone accounts for 65 per cent of global consumption.

The manufacturing capacity of the whole industry in China is rising at three per cent a year. Global demand is growing at five to six per cent. Chinese polyester manufacturers are recovering in a positive direction from the overcapacity damage in 2015.

Xinfengming is China’s second largest polyester filament manufacturer and sells products across Southeast China and 12 countries globally. The company had a revenue of 17.5 billion yuan in 2016. Two decades ago, the US and Europe dominated the global polyester market. Today, the Asia-Pacific region has become an important location for polyester manufacturing with availability of cheap labor.

This shift was possible because of the Multi Fiber Agreement which helped to build mutual relationships between developed countries like the US and the European Union and developing nations like China.